The Impact of Global Human-Capital Outsourcing on the Employment Patterns in the United States PowerPoint PPT Presentation

The Impact of Global Human-Capital Outsourcing on the Employment Patterns in the United States. Constantin Ogloblin School of Economic Development March, 2005. The Problem.

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The Impact of Global Human-Capital Outsourcing on the Employment Patterns in the United States

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The Impact of Global Human-Capital Outsourcing on the Employment Patterns in the United States

Constantin Ogloblin

School of Economic Development

March, 2005

The Problem

An established view: global economic integration tends to shift low-skilled jobs from developed to developing countries while creating high-skilled jobs in the developed world.

The new round of globalization challenges this view.

Anecdotal evidence of companies in developed economies shipping high-skilled jobs offshore piles up, raising fears of job losses among high-skilled workers in the West and sparking hot political debates.

830,000 white-collar jobs will be outsourced from the U.S. offshore by 2005, and by 2015 the number is expected to rise to 3.4 million (Forrester Research Inc.).

The supply of IT services is the most global: 16% of all the work done by the world’s IT-services is carried out away from where these services are consumed (in the software industry the proportion is 6%).